NEW YORK, July 15, 2026, 15:05 (EDT)
Bank of America NYSE:BAC reported record Q2 sales and trading revenue of $7.1 billion. Average value-at-risk dropped 42% to $49 million, down from $84 million last year. The numbers point to stronger client activity and execution driving the earnings increase, rather than a larger market-risk stance.
This is notable since markets usually see trading windfalls as lower quality profits. Value-at-risk, or VaR, tracks possible trading losses based on models. Bank of America’s VaR fell, even though average trading assets went up 7% and equities revenue was up 70%.
| Bank of America Global Markets | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Sales and trading brought in $7.1 billion, up from $5.3 billion, a 33% jump. | $7.1 billion | $5.3 billion | +33% |
| Average VaR dropped 42%, down to $49 million from $84 million. | $49 million | $84 million | -42% |
| Average trading-related assets are now $746.9 billion, 7% higher than the $700.4 billion last year. | $746.9 billion | $700.4 billion | +7% |
| Trading revenue as a percent of average trading assets hit 0.95%, up by 0.19 point from 0.76%. | 0.95% | 0.76% | +0.19 percentage point |
| Net income rose 72% to $2.63 billion, compared with $1.53 billion in the year-ago quarter. | $2.63 billion | $1.53 billion | +72% |
| Return on average allocated capital climbed to 20%. That’s up 7 points from 13%. | 20% | 13% | +7 percentage points |
| Efficiency ratio improved to 56%, down 8 points from 64%. | 56% | 64% | -8 percentage points |
Company reported the figures; reporter calculated revenue-to-assets and the changes in percentage points.
The unit’s quarterly revenue yield from trading assets jumped about 26%. Profit in Global Markets climbed 72%, while the efficiency ratio dropped to 56%. That meant lower costs for each dollar of revenue. Net income at group level went up 27% to $9.1 billion, and diluted EPS came in at $1.21, ahead of the $1.13 analyst consensus.
JPMorgan Chase & Co. NYSE:JPM reported a 35% jump in markets revenue, with CIB trading VaR up 18%. Citigroup Inc. NYSE:C lifted markets revenue 17% and saw average VaR climb 4%.
| Firm | Q2 trading/markets revenue growth | Change in disclosed trading-risk gauge | Equity markets revenue growth |
|---|---|---|---|
| Bank of America | up 33% | down 42% | rose 70% |
| JPMorgan Chase | up 35% | up 18% | jumped 86% |
| Citigroup | up 17% | up 4% | grew 45% |
Numbers show year-over-year changes for each bank. VaR figures aren’t comparable across banks because definitions and confidence levels aren’t the same.
Bank of America didn’t post the biggest jump in equity-trading—JPMorgan’s growth came in at 86%, higher—but BofA stayed close to JPMorgan in overall markets growth, trailing by just two percentage points. At the same time, its risk gauge dropped sharply. That points to gains from flow capture rather than heavy balance sheet use, but the filings don’t break out what came from pricing, volumes, hedging, or product mix.
Bank of America’s trading performance also came with a more stable earnings base. Net interest income was up 9% to $16.0 billion, with average loans increasing 8%. CFO Alastair Borthwick said full-year NII growth will likely land at the high end of the earlier 6%-to-8% target.
“Our strategy is working,” Borthwick said after results came out. CEO Brian Moynihan called it “an exceptional quarter for our markets-facing businesses.” Stephen Biggar, director of financial-services research at Argus Research, said the “AI-driven capex super cycle has benefited equity issuance, M&A activity and debt financing,” tying the trading gains to Iran-linked volatility. Reuters
Credit costs failed to give much of an accounting lift this time. Provision for credit losses dropped to $1.37 billion from $1.59 billion, but the net reserve release was just $46 million. Net charge-offs slipped to $1.41 billion from $1.53 billion. The credit-card charge-off rate came down to 3.55% from 3.82%.
The drop in VaR isn’t proof that actual economic risk was down 42%. This measure looks backward and depends on different bank models. Banks don’t all calculate it the same way. If there’s a volatility spike, softer client flows, bigger pay, or less equity issuance, the revenue-risk gap could shrink fast. Bank of America’s Global Markets costs were up 18% last quarter.
Bank of America shares traded up about 1.1% to $61.30 Wednesday afternoon. The stock move was muted, but with a 20% markets return on allocated capital, less modeled risk and stronger interest income, investors can see more franchise improvement this quarter instead of just a one-off volatility gain.
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